ISLAMABAD - The Federal Board of Revenue (FBR) and Sindh Revenue Board (SRB) have reached an agreement regarding the parameters for cross-adjustment/verification of claim of input tax in light of the memorandum of understanding signed between the two authorities on March 13, 2014. In response to the difficulties being faced by the taxpayers due to change in the definition of ‘input tax’ relating to provincial services, representatives of FBR and SRB held several meetings to resolve the issue.

Finally, in the meeting held on Friday, FBR and SRB reached an agreement regarding the parameters for cross-adjustment/verification of claim of input tax in light of the MoU signed between the two authorities on 13/03/2014. The understanding was reached after extensive deliberations and meetings between the two revenue authorities. The agreement shall facilitate the taxpayers and allow them to adjust provincial tax paid on services against their liability of sales tax on goods.

FBR’s team was headed by Nisar M, Chairman FBR, and included Dr M Irshad, Member (IR Operations), Rehmatullah Khar, Member (Policy), Abdul Hameed Memon, Chief (Automation and Sales Tax), Raza Ashfaq, Secy IR (LP & E), M Muti-ur-Rehman, Secy (STM) and Abid Naeem, Senior Manager PRAL. On the other side, the SRB team was headed by Alamuddin Bullo, Chairman SRB, and included SMH Kazimi, Advisor SRB, M Iqbal Lakho, Commissioner SRB, Muhammad Amir Sheikh, DC SRB, Abdullah Soomro, Assistant Commissioner SRB, and Shaique Jafri, Senior Manager PRAL.